TNAG-1449-FCO40-1953-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1986 — Page 314

2

Mr. Sohmen: Sir, my question really would have been for the

Financial Secretary to confirm that he was not referring to

monopolies and thereby suggesting that the o11 Companies were

engaging in monopolistic practices but I think his last answer

has confirmed that point.

Mr. Tam

asked in Cantonese :

(The following is the interpretation of his question.)

with

Hong Kong is a place of free economy but Government still has the

duty to protect the rights of consumers. Many people have pointed

out that the oil market in Hong Kong is not a free market,

prices determined by free market mechanism as described by the

Government because there are actually only a few oil suppliers

and the price is determined by negotiation and discussion among

themselves. Therefore it has been suggested to the Government that

there should be positive and constructive intervention in order to

make sure that there is a proper operation here. Could the Government

advise this Council what its reactions are to the above comment?

Financial Secretary : Sir, as the premises on which Mr. Tam bases

are totally incorrect, I cannot accept

his question

them.

There is, in fact, very sharp competition in Hong Kong. The

oil companies, all seven of them, do indeed compete with each other.

If there was a monopoly obviously there would be a case of Government

intervention. In the present circumstances, it is clearly wholly

opposed to all Government policies to intervene in the market place.

I may say that the only way I can think of intervening successfully

would be to set up a Government marketing company and I can imagine

nothing which is less calculated to produce cheaper oil or more likely

to add to the taxation burden on the average tax payer in Hong Kong.